Nektar Therapeutics Announces Q1 2024 Financial Results

Nektar Therapeutics, a biotechnology company based in San Francisco, has announced its financial results for the first quarter ending March 31, 2024. The company reported holding $326.0 million in cash and investments in marketable securities as of March 31, 2024, a slight decline from $329.4 million at the end of 2023. These funds are expected to support Nektar's strategic development and operations through the third quarter of 2026.

President and CEO Howard W. Robin highlighted the notable advancements in the company's immunology and inflammation pipeline during the first quarter. The company's lead product candidate, rezpegaldesleukin (REZPEG), is undergoing Phase 2b clinical trials for atopic dermatitis and alopecia areata, with enrollment progressing on schedule. Topline data from these trials are anticipated in the first half of 2025. Additionally, Nektar’s new bivalent antibody targeting the TNFR2 receptor is moving through studies to support clinical entry next year.

Financially, Nektar's revenue for the first quarter of 2024 remained steady at $21.6 million, matching the figure from the same period in 2023. However, total operating costs and expenses for the first quarter of 2024 were significantly reduced to $57.1 million, down from $156.3 million in the first quarter of 2023. The previous year's expenses included a one-time $76.5 million non-cash goodwill impairment charge. The further reduction in operating costs for the first quarter of 2024 is attributed to decreases in restructuring, impairment, and costs of terminated programs, along with reductions in R&D and general and administrative (G&A) expenses.

R&D expenses in the first quarter of 2024 were $27.4 million, a decrease from $30.5 million in the same period of 2023, primarily due to lower employee and facility costs. This was slightly offset by increased expenses for developing rezpegaldesleukin and NKTR-0165, a TNFR2 agonist antibody. G&A expenses were also reduced to $20.1 million from $21.1 million in the first quarter of 2023. Restructuring, impairment, and other costs of the terminated program fell sharply to $1.0 million from $21.2 million in the first quarter of 2023 due to reduced non-cash lease and equipment impairment charges and lower severance expenses.

The net loss for the first quarter of 2024 was reported at $36.8 million, translating to a loss of $0.19 per share, a significant improvement from the net loss of $137.0 million or $0.73 per share in the first quarter of 2023.

In terms of recent business highlights, Nektar initiated a Phase 2b study of rezpegaldesleukin in March 2024 for severe to very severe alopecia areata, with topline data expected in the first half of 2025. Enrollment continues for the Phase 2b study of rezpegaldesleukin in moderate-to-severe atopic dermatitis, also with anticipated topline data in the first half of 2025. Furthermore, Nektar entered into a securities purchase agreement with TCG Crossover Fund in March 2024, raising approximately $30 million in a private placement financing.

Nektar specializes in developing treatments for autoimmune and chronic inflammatory diseases. Apart from rezpegaldesleukin, its pipeline includes NKTR-0165, a preclinical candidate, and NKTR-255, an investigational IL-15 receptor agonist aimed at enhancing the immune system's ability to combat cancer.

Nektar's recent financial performance and ongoing clinical trials mark a period of strategic progress and continued focus on advancing their therapeutic candidates.